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Do carriers abuse the slot system to inhibit airport capacity usage? Evidence from the US experience

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  • Fukui, Hideki

Abstract

This paper examines whether carriers using the US slot-constrained airports have hoarded underutilized slots by abusing the slot system. Regression analyses of the US domestic route data show that there is potential evidence that carriers have hoarded slots at LaGuardia and O'Hare. Even at National and Kennedy, hoarding behaviors are suspected on the shorter routes. The results suggest that it would be desirable to modify the slot system to reduce its vulnerability to hoarding behaviors by carriers.

Suggested Citation

  • Fukui, Hideki, 2012. "Do carriers abuse the slot system to inhibit airport capacity usage? Evidence from the US experience," Journal of Air Transport Management, Elsevier, vol. 24(C), pages 1-6.
    • Handle: RePEc:eee:jaitra:v:24:y:2012:i:c:p:1-6
    DOI: 10.1016/j.jairtraman.2012.04.001
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    References listed on IDEAS

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    1. Jan K. Brueckner, 2004. "Network Structure and Airline Scheduling," Journal of Industrial Economics, Wiley Blackwell, vol. 52(2), pages 291-312, June.
    2. Pai, Vivek, 2010. "On the factors that affect airline flight frequency and aircraft size," Journal of Air Transport Management, Elsevier, vol. 16(4), pages 169-177.
    3. Givoni, Moshe & Rietveld, Piet, 2009. "Airline's choice of aircraft size - Explanations and implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(5), pages 500-510, June.
    4. Dresner, Martin & Windle, Robert & Zhou, Ming, 2002. "Regional jet services: supply and demand," Journal of Air Transport Management, Elsevier, vol. 8(5), pages 267-273.
    5. Brueckner, Jan K. & Pai, Vivek, 2009. "Technological innovation in the airline industry: The impact of regional jets," International Journal of Industrial Organization, Elsevier, vol. 27(1), pages 110-120, January.
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    Citations

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    Cited by:

    1. Noto, Claudio, 2020. "Airport slots, secondary trading, and congestion pricing at an airport with a dominant network airline," Research in Transportation Economics, Elsevier, vol. 79(C).
    2. Fu, Xiaowen & Lei, Zheng & Liu, Shaoxuan & Wang, Kun & Yan, Jia, 2020. "On-time performance policy in the Chinese aviation market - An innovation or disruption?," Transport Policy, Elsevier, vol. 95(C), pages 14-23.
    3. Sheng, Dian & Li, Zhi-Chun & Fu, Xiaowen, 2019. "Modeling the effects of airline slot hoarding behavior under the grandfather rights with use-it-or-lose-it rule," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 48-61.
    4. Kenneth Button, 2020. "Studying the empirical implications of the liberalization of airport markets," Competition and Regulation in Network Industries, , vol. 21(3), pages 223-243, September.
    5. Fukui, Hideki, 2014. "Effect of slot trading on route-level competition: Evidence from experience in the UK," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 124-141.
    6. Berster, Peter & Gelhausen, Marc C. & Wilken, Dieter, 2015. "Is increasing aircraft size common practice of airlines at congested airports?," Journal of Air Transport Management, Elsevier, vol. 46(C), pages 40-48.
    7. Fukui, Hideki, 2019. "How do slot restrictions affect airfares? New evidence from the US airline industry," Economics of Transportation, Elsevier, vol. 17(C), pages 51-71.
    8. Guiomard, Cathal, 2018. "Airport slots: Can regulation be coordinated with competition? Evidence from Dublin airport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 114(PA), pages 127-138.
    9. Lin, Pei-Chun, 2023. "The propagation of European airports’ on-time performance and on-time flights via air connectivity prior to the Covid-19 pandemic," Journal of Air Transport Management, Elsevier, vol. 109(C).
    10. Miranda, Victor A.P. & Oliveira, Alessandro V.M., 2018. "Airport slots and the internalization of congestion by airlines: An empirical model of integrated flight disruption management in Brazil," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 201-219.
    11. Till Kösters & Marlena Meier & Gernot Sieg, 2023. "Effects of the use-it-or-lose-it rule on airline strategy and climate," Working Papers 36, Institute of Transport Economics, University of Muenster.

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